Res 2004-129 - Laserfiche WebLink

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(I) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and . controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that· this authorization is dependent Qnananalysis of the makeup of the entity's entire portfolio or requires an interpretation of subjectiveinvestment standards. (1) Theinvestment officer of an entity may not acquire or otherwise obtain any authorized investment described in the investment policy of the investing entity from a person who has not delivered to the entity the instrument required by Subsection (k). (m) An investing entity other than a state agency, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. (n) Exceptas provided by Subsection (0), at least once every two years a state agency shall arrange for a compliance audit of management controls on investments and adherence to the agency's established investment policies. The compliance audit shall be performed by the agency's internal auditor or bya private auditor employed in the manner provided by Section 321.020. Not later than January 1 of each even-numbered year, a state agency shall report the results of the most recent audit performed under this subsection to the state auditor. A state agency also. shall report to the state. auditor other information the state auditor determines necessªry to assess compliance with laws and policies applicable to state agency investments. A report under this subsection shall be prepared in a manner the state auditor prescribes. (o) The auditrequirements of Subsection (n) do.not apply to assets of a state agency that are invested by the comptroller under Section 404.024. Sec. 2256.006 Standard of Care. (a)· Investments shall be made with judgmentand care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but forinvestment, considering the probable safety of capital and the probable income to be derived. Investmentoffunds shall be governed by thè followinginvestment objectives, in order of priority: (1) preservation and safety of principal; (2) liquidity; and (3) yield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment City of San Marcos Investment Policy Page 23